June 16, 2005 - The Medicare Payment Advisory Commission (MedPAC web site) has released a new report to Congress entitled, "Issues in a Modernized Medicare Program". Press release from MedPAC (2-page pdf file).

Chapter 4 of the report concerns payment for dialysis. It is an 18-page pdf file.

In the report, MedPAC made three recommendations concerning payment for dialysis:

4A - The Congress should direct the Secretary to:

• eliminate differences in paying for composite rate services between hospital-based and freestanding dialysis facilities; and
  
• combine the base composite rate and the add-on adjustment.
  
  COMMISSIONER VOTES: YES 16 � NO 0 � NOT VOTING 0 � ABSENT 1
  

4B - The Secretary should:

• eliminate differences in paying for injectable drugs between hospital-based and freestanding dialysis facilities; and
  
• use average sales price data to base payment for all injectable dialysis drugs that are separately billable in 2006.
  
  COMMISSIONER VOTES: YES 16 � NO 0 � NOT VOTING 0 � ABSENT 1
  

4C - The Congress should give the Secretary the authority to periodically collect average acquisition cost data from dialysis providers and compare it with average sales price data. The Secretary should collect data on the acquisition cost and payment per unit for drugs � other than erythropoietin � that hospital-based providers furnish.

COMMISSIONER VOTES: YES 16 � NO 0 � NOT VOTING 0 � ABSENT 1

The full report is a 227-page pdf file.